(MENAFN- Investor Ideas) Investorideas AI stock news commentary for (NYSE: SNOW ) from TradingBiz- Winter is far off, but it might just be the right time for Snowflake Inc., one of the leading players in the Enterprise AI space. analyst Rahul Nambiampurath recently identified this gem, trading at $163.34, and marked it capable of going past $200 in the short-to-mid-term.
"Snowflake has gained traction due to several key developments, including its Large Language model for AI business," mentions Rahul.
Rahul adds that one of Snowflake's key competitors, Amazon, offering Amazon Web Services, is up over 22% year-to-date, making the popularity of the cloud computing and data warehousing space all the more evident.
Diving Into the Q1 2024 Results
One of the key reasons for Snowflake (SNOW) to appear on Rahul's radar is the robust Q1 result. Here are the top points that deserve attention:
Year-on-year revenue growth of 48% Quarter-on-quarter product revenue surge of over 50% Product revenue, trailing 12-month, higher than $1 million Revenue retention percentage of 131%, amid the growing competition
Snowflake even released a moderately aggressive Q2 2024 picture via the following guidance numbers:
Operating income to grow up to 3% of the total revenue Product revenue stands at a maximum level of $750 million, which was $590.1 million in Q1.
All these fundamental numbers add to the optimism surrounding SNOW.
Technical Analysis of SNOW: Fundamentals Meet Charts
Despite the gap-down formation in late February 2024, led by disappointing Q4 2023 numbers, the daily SNOW chart looks poised for redemption. While the prices are still trading in a range, the RSI is on a growth spree, indicating a strong bullish divergence.
Snowflake (SNOW) price chart: TradingView Rahul believes that if SNOW crosses above $165.67, with decent volume, it might have the legs to go as high as $191.28 in virtually no time due to the lack of strong resistance levels. Post that, $202 could be the new level to breach.
Stefan Slowinski, an analyst at Exane BNP Paribas, further validates Rahul's analysis. Stefan has a "Buy" rating for SNOW with a target of $200.
Read recent article on AI stocks including $NVDA
AI Tech Stocks to Watch (TSXV: KSUM) (NASDAQ: SMCI) (NASDAQ: NVDA) (OTCQX: VRSSF)
AI Technology Making Businesses more Efficient and Profitable- Big Gains for AI Stocks on the Horizon?
Research more AI stocks with Investorideas stock directory
About Investorideas - Big Investing Ideas
Investorideas is the go-to platform for big investing ideas. From breaking stock news to top-rated investing podcasts, we cover it all. Our original branded content includes podcasts such as Exploring Mining, Cleantech, Crypto Corner, Cannabis News, and the AI Eye. We also create free investor stock directories for sectors including mining, crypto, renewable energy, gaming, biotech, tech, sports and more. Public companies within the sectors we cover can use our news publishing and content creation services to help tell their story to interested investors. Paid content is always disclosed.
Disclaimer/Disclosure: Investorideas is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure: contact management and IR of each company directly regarding specific questions. More disclaimer and disclosure info Learn more about publishing your news release and our other news services on the Investorideas newswire News-Upload/ Global investors must adhere to regulations of each country.
MENAFN23052024000142011025ID1108251186
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.